Billionaire investor Stanley Druckenmiller revealed on Tuesday that he had slashed his bets on chipmaker Nvidia earlier this year, saying the rapid boom in artificial intelligence was not a factor in the near term. Maybe a little excessive.
“We did cut this position and a lot of other positions at the end of March. I just needed a break. We’ve been through a rough patch. A lot of the things we recognized are now recognized by the market.” Druckenmiller said on CNBC’s “Squawk Box.”
Druckenmiller said he reduced his bet after “the stock price went from $150 to $900.” “I’m not Warren Buffett; I haven’t owned anything in 10 or 20 years. I wish I were Warren Buffett,” he added.
Nvidia is a major beneficiary of the tech industry’s recent obsession with large artificial intelligence models, which are developed on the company’s expensive server graphics processors. The stock was one of the best-performing stocks last year, rising as much as 238%. Shares will rise another 66% in 2024.
The prominent investor, who now runs the Duquesne Family Office, said his young partner introduced him to Nvidia in the fall of 2022 and he believed blockchain excitement would far exceed that of artificial intelligence.
“I don’t even know how to spell it,” Druckenmiller said. “I bought it. Then a month later ChatGPT happened. Even an old guy like me could figure out what that meant, so I increased my sites significantly.”
Although Druckenmiller trimmed his Nvidia holdings this year, he said he remains bullish on the power of artificial intelligence in the long term.
“So artificial intelligence may be a little overhyped now, but in the long run it’s undervalued,” he said. “Artificial intelligence can rhyme with the Internet. When we go through all this capital expenditure, we need to get a return on it as it gradually increases every day. The huge return may be in four to five years.”
The high-profile investor also owns Microsoft and letter Just as artificial intelligence has been doing over the past year.
Druckenmiller once managed George Soros’s Quantum Fund and rose to fame after participating in a $10 billion bet against the pound in 1992. , and closed his company in 2010.
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